Bitcoin and Corporate Transparency: A Match Made in Heaven
We live in an age where trust in institutions is falling. Trust in government has been steadily declining since the 1960s and large swaths of the public view corporations as inherently evil. One reason for this lack of trust stems from opaque practices that allow C-suite executives and government officials to manipulate systems for their own financial gain. Even the Pentagon has failed seven financial audits in a row!
The best way to build trust is through transparency. When stakeholders have direct insights into how a business is spending instead of trusting the business’s word, they are more likely to invest, work hard, and effectively support the business.
If corporations want an edge in the current economic and political climate, they could benefit from the full transparency of the bitcoin protocol to build trust with key stakeholders.
Why transparency matters
Trust and faith in a corporation are key across the stakeholder landscape. Whether it’s an employee planning their future career growth, or an investor calculating their ROA, transparency across a business helps ensure these decisions are made with the right information.
How bitcoin helps transparency
As an open-source digital asset with an immutable ledger, bitcoin is a transparent financial system that enables businesses to increase their own transparency across their operations.
Audit trail
No one can alter transactions that are broadcast over the bitcoin protocol, creating an unprecedented level of transaction verification and traceability. Thanks to the bitcoin blockchain’s metadata and timestamps—along with its underlying cryptographic technology—anyone can easily and quickly audit each transaction.
Financial reporting
Instead of waiting weeks or months for financial reports, near-instant bitcoin transactions decrease financial reporting lag time and give investors and regulators clarity into corporate spending. Bitcoin’s immutable ledger of all financial transactions allows businesses to more quickly identify financial discrepancies, and for key stakeholders to get real-time insight into corporate finances. Businesses would no longer have the ability to backdate or alter historical financial records.
Supply chain tracking
A global supply chain needs a fully transparent payment network that doesn’t require currency exchange. Bitcoin payments can prove on-time payments to suppliers, a record of contractual obligations, and proof of payment, all in a trustless manner. It also provides end-to-end visibility of goods and materials movement, creating an unbroken chain of custody.
Corporate voting
Bitcoin enhances transparency by providing a verifiable record of shareholder votes and corporate decisions, which helps prevent voter fraud and ensures that corporate decisions accurately reflect stakeholder interests.
Tax and regulatory compliance
Because bitcoin transactions create a clear record of payments, tax authorities can easily verify compliance with local tax laws. Companies can prove compliance in real-time, while regulators can monitor transactions and identify potential violations more efficiently than ever before.
Bitcoin and corporate transparency
Prior to bitcoin, some of the challenges costing businesses time and energy were left unaccounted for. Now, with bitcoin available to all businesses, the ones who take advantage of it can expect benefits that raise the bar for aspiring employees, customers, and investors.
Bitcoin creates a new, transparent corporate paradigm
Bitcoin sets a precedent to no longer tolerate corporate opacity. Instead, companies will be held to a higher standard; one in which the core infrastructure and immutable ledger of truth is the bitcoin ledger. Over time, as more businesses move toward a bitcoin standard, corporations will increase their transparency, and the world will be better for it.
Is your business ready for the Bitcoin Business Standard? Reach out for a consultation today, and our team of specialists will help you build a newfound level of trust that your employees, customers, and all involved parties will come to appreciate.
